Capio AB (publ) Interim report Jan Sep 2018mb.cision.com/Main/277/2658428/935303.pdf · 2018-10-29 · CAPIO AB (PUBL) / INTERIM REPORT / JAN – SEP 2018 3 (36) The Group and the

Capio AB (publ)

Interim report Jan – Sep 2018

CAPIO AB (PUBL) / INTERIM REPORT / JAN – SEP 2018 2 (36)

July – September 2018

Net sales MSEK 3,816 (3,455). Organic sales growth

2.1% (2.2) and total sales growth 10.4% (9.1)

EBITDA1 MSEK 189 (168) and margin 5.0% (4.9).

EBITDA increased by 12.5%

EBITA1 MSEK 66 (53) and margin 1.7% (1.5). EBITA

increased by 24.5%

Operating result (EBIT) MSEK -39 (18) and margin

-1.0% (0.5). EBIT decreased by 316.7%

Profit for the period2 MSEK -54 (-7). Earnings per

share after dilution2 SEK -0.36 (-0.03)

January – September 2018

Net sales MSEK 12,151 (11,250). Organic sales

growth 1.6% (2.0) and total sales growth 8.0% (8.8)

EBITDA1 MSEK 782 (766) and margin 6.4% (6.8).

EBITDA increased by 2.1%

EBITA1 MSEK 415 (427) and margin 3.4% (3.8).

EBITA decreased by 2.8%

Operating result (EBIT) MSEK 260 (335) and margin

2.1% (3.0). EBIT decreased by 22.4%

Profit for the period2 MSEK 145 (215). Earnings per

share after dilution2 SEK 1.05 (1.53)

All numbers in MSEK, if not else stated.

CEO COMMENT:

“Nordic develops well while France improves in a

weak market and Germany is under restructuring.” Organic sales growth of 2.1% and EBITA growth

of 24.5% in the seasonally weak third quarter, especially impacting the French and German segments

The Nordic segment confirmed the strong development from previous quarters, in line with historical trends

Q3 is the fourth consecutive quarter in France demonstrating a positive change of trend. Improvements achieved in a market characterized by low volume growth

The ongoing restructuring impacted the development in Germany negatively in the quarter as foreseen. Visible effects are expected during 2019

In the Nordic segment, the third quarter confirmed a good

development in line with historical trends. Nordic reached an

18.7% EBITA increase in Q3 and for the first nine months the

increase was 13.1%. This included MSEK 30 of additional

costs for digitalization in Capio Go and Capio Proximity Care

and adjusted for this the EBITA increase for the first nine

months was 22.7%.

The work to accelerate specialization and digitalization is

continuing and as previously announced, a closer coordina-

tion and cooperation between the Nordic countries is curr-

ently being prepared. This collaboration includes a closer

know-how exchange and procurement cooperation as well as

joint IT based tools, supporting good service to patients and

efficient processes. Capio’s combination of digital and

physical healthcare constitutes a unique patient offering and

will transform healthcare provision in Sweden and the Nordics

both in terms of availability for patients and staff productivity.

The acquisition of Legevisitten with annual net sales of

approximately MSEK 600 was closed in early September and

the operations are now being integrated in the Swedish

specialist and primary care operations.

The French segment improved in Q3 2018 in a market

characterized by low volume growth. Organic sales growth in

the quarter was supported by two more working days

compared with the same period in 2017. The two hospital

projects are progressing and La Croix du Sud in Toulouse will

open at the end of October while Médipôle Lyon-Villeurbanne

in Lyon will open at the end of December. In the third quarter

two existing hospital properties were impaired with a total of

MSEK -45 (refer to note 3 for further information).

The ongoing restructuring impacted the development

negatively in the German segment in the quarter as

foreseen. Action plans are implemented and new medical

teams are in place in some of the general hospitals while the

specialist business is adapting to new market conditions.

Visible effects are expected during 2019.

* On October 8, 2018 Ramsay Générale de Santé (Ramsay

GdS) increased its public cash offer to the shareholders in

Capio to SEK 58 per share. On October 10, Ramsay GdS

announced that the acceptance level condition was lowered

to 75%. Following the increased offer and the lower accep-

tance level, Capio’s board of directors on October 10

announced its unanimous recommendation to the Capio

shareholders to accept the increased offer. As a result, the

Board also decided to withdraw its proposal regarding the

sale of Capio France and consequently cancelled the

extraordinary general meeting to resolve on such sale that

was called to be held on October 18. A minor part of the

advisory and transaction costs related to the cash offer and

the earlier planned divestment of Capio France were

reflected in the Q3 results (MSEK -17) while the remaining

costs, estimated at approximately MSEK -135, will be

accounted for in Q4 (including the cost-coverage fee of

MEUR 5.0 payable to Vivalto Santé).

Attila Vegh

President and CEO 1 Refer to page 34 for definitions of EBITDA and EBITA. 2 Profit for the period refers to profit attributable to parent company shareholders. Refer to note 2 for calculation of EPS

(before and after dilution).

This is a translation of the original Swedish interim report. In the event of difference between the English translation and the Swedish original, the Swedish interim report shall prevail.


The Group and the segments in brief

Capio Group JUL - SEP JAN - SEP FULL YEAR

2018 2017 Change, % 2018 2017 Change, % RTM 2017

Net sales 3,816 3,455 10.4 12,151 11,250 8.0 16,228 15,327 8.9 2.4

1,114

7.3

659 4.3

540 3.5

370

2.62

-477 3.1

3,691 3.315

327

Total sales growth, % 10.4 9.1 8.0 8.8 8.4 8.9

Organic sales growth, % 2.1 2.2 1.6 2.0 2.0 2.4 EBITDA 189 168 12.5 782 766 2.1 1,130 1,114

Margin, % 5.0 4.9 6.4 6.8 7.0 7.3 EBITA 66 53 24.5 415 427 -2.8 647 659

Margin, % 1.7 1.5 3.4 3.8 4.0 4.3 Operating result (EBIT) -39 18 -316.7 260 335 -22.4 465 540

Operating margin (EBIT), % -1.0 0.5 2.1 3.0 2.9 3.5 Profit for the period1 -54 -7 -671.4 145 215 -32.6 300 370 Earnings per share after dilution, SEK2 -0.36 -0.03 1.05 1.53 2.14 2.62 Net capital expenditure -118 -108 -326 -260 -543 -477

In % of net sales 3.1 3.1 2.7 2.3 3.3 3.1 Net debt 4,529 3,704 4,529 3,704 4,529 3,691

Financial leverage 4.0 3.5 4.0 3.5 4.0 3.3

Segments

Capio Nordic JUL - SEP

JAN - SEP

FULL YEAR


Net sales 2,213 2,007 10.3 6,932 6,371 8.8 9,256 8,695 Total sales growth, % 10.3 16.6 8.8 14.3 10.5 14.6

Organic sales growth, % 2.6 4.3 2.8 3.8 3.3 4.1 EBITDA 172 153 12.4 497 447 11.2 682 632

Margin, % 7.8 7.6 7.2 7.0 7.4 7.3 EBITA 127 107 18.7 354 313 13.1 500 459

Margin, % 5.7 5.3 5.1 4.9 5.4 5.3 Operating result (EBIT) 121 86 40.7 350 255 37.3 457 362

Operating margin (EBIT), % 5.5 4.3 5.0 4.0 4.9 4.2 Net capital expenditure -31 -37 -103 -105 -178 -180

In % of net sales 1.4 1.8 1.5 1.6 1.9 2.1

Capio France JUL - SEP

JAN - SEP

FULL YEAR


Net sales 1,331 1,188 12.0 4,311 4,001 7.7 5,745 5,435 Total sales growth, % 12.0 -0.7 7.7 2.1 6.5 2.3

Organic sales growth, % 2.9 -0.8 1.1 -0.4 1.5 0.4

EBITDA 47 29 62.1 349 323 8.0 497 471

Margin, % 3.5 2.4 8.1 8.1 8.7 8.7

EBITA -20 -31 35.5 156 144 8.3 238 226

Margin, % -1.5 -2.6 3.6 3.6 4.1 4.2

Operating result (EBIT) -85 -37 -129.7 67 121 -44.6 162 216

Operating margin (EBIT), % -6.4 -3.1 1.6 3.0 2.8 4.0 Net capital expenditure -74 -58 -185 -121 -305 -241

In % of net sales 5.6 4.9 4.3 3.0 5.3 4.4

Capio Germany JUL - SEP

JAN - SEP

FULL YEAR


Net sales 272 260 4.6 908 878 3.4

1,227 1,197 Total sales growth, % 4.6 3.6 3.4 3.3 2.3 2.1

Organic sales growth, % -4.8 2.4 -4.7 0.8 -4.1 0.0 EBITDA -10 6 -266.7 8 63 -87.3 43 98

Margin, % -3.7 2.3 0.9 7.2 3.5 8.2 EBITA -19 -2 -850.0 -18 41 -143.9 9 68

Margin, % -7.0 -0.8 -2.0 4.7 0.7 5.7 Operating result (EBIT) -25 -7 -257.1 -50 35 -242.9 -28 57

Operating margin (EBIT), % -9.2 -2.7 -5.5 4.0 -2.3 4.8 Net capital expenditure -13 -11 -35 -29 -49 -43

In % of net sales 4.8 4.2 3.9 3.3 4.0 3.6

1 Profit attributable to parent company shareholders. 2 Refer to note 2 for calculation of earnings per share (before and after dilution).


Financial targets and development

Quarterly development 2015-2018 (RTM) Net sales and sales growth

Target

The target is to grow organically at least in line with

the market and add acquisition growth at least at a

similar rate over time

Development in 2018

Total sales growth 8.0% and organic sales growth

1.6% (Jan-Sep 2018)

Organic sales growth was in line with market growth

in the Nordics and France. Nordic was impacted by

a contract loss and France by a weak market

growth. The growth in Germany was lower than

market growth following low inpatient volumes

Acquisitions and changes in exchange rates

contributed to total sales growth. Q3 2018 was

positively impacted by the inclusion of Legevisitten

Quarterly development 2015-2018 (RTM) EBITDA and margin

Target

The target is to grow EBITDA at a higher rate than

sales growth through increased productivity and

operational leverage

Development in 2018

EBITDA increased by 2.1% (Jan-Sep 2018)

Operational leverage was negative given the

development in Germany

Positive contribution from the acquired businesses,

in total in line with expectations

Quarterly development 2015-2018 (RTM) Net capital expenditure and in % of net sales

Target

The target with present business mix is to keep net

capex around 3% of net sales per year including

Modern Medicine and expansion related capex

Development in 2018

Net capital expenditures in % of net sales was 3.3%

(RTM September 2018), which was slightly above

the target impacted by phasing of projects in France

and Germany

0

2

4

6

8

10

12,000

13,000

14,000

15,000

16,000

17,000

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2015 2016 2017 2018

Net sales Organic sales growth, %

Total sales growth, %

MSEK %

4

5

6

7

8

9

700

800

900

1,000

1,100

1,200

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2015 2016 2017 2018

EBITDA Margin, %

MSEK %

0

1

2

3

4

5

100

200

300

400

500

600

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2015 2016 2017 2018

Net capital expenditure In % of sales

MSEK %


Digitalizing healthcare

Development of consultations online

Number of consultations online (RTM, on a weekly basis)

Capio Go was launched in May 2017 and during its first year,

the digital doctor consultation service has been rolled out to

Capio’s more than 100 primary care centers and about

900,000 listed patients in Sweden. Capio’s online service is

integrated in the physical medical offering, providing a

complete and secure patient journey with access to

laboratory and other diagnostic services as well as physical

visits at one of Capio’s primary care centers. Capio

Proximity Care is currently implementing the same

technology to prepare physical visits at a primary care center

– Better Visits, enabling more precise diagnosing and more

efficient use of the time spent with patients.

From June 1, 2018, Capio Go’s remuneration for digital

doctor consultations is SEK 570 per visit, of which SEK 250 is

patient fee. During the first nine months 2018, Capio has

invested MSEK 30 more in digitalization compared to the

same period 2017 to reach the current position. During Q3

Capio launched a digital marketing campaign (including

e.g.TV and social media channels) in Sweden to recognize

Capio’s broad healthcare service offering, and specifically

increase awareness of the new digital services offered by

Capio. Capio’s combined digital and physical platform makes

Capio well positioned to capture the rapidly growing segment

of digital consultations and Capio Go and Capio Proximity

Care will work in close cooperation to manage the entire

patient journey. The increase of digital visits by Capio Go is

expected to convert patient visits from the existing listing

base at lower cost and attract new, non-listed patient’s visits

to Capio Go. This is estimated to increase the number of

listed patients (recurring volume) within Capio Proximity Care

as a result of attractive offerings and well-targeted marketing

activities. Patient conversion to digital visits will also increase

availability to the physical primary care centers and drive staff

productivity.

Measuring Modern Medicine

Development of Average length of stay (AVLOS)1

JUL - SEP JAN - SEP FULL YEAR

AVLOS by segment, Days 2018 % 2017 2018 % 2017 RTM 2017 % 2016 % 2015 %

Capio Nordic 4.08 5.4 3.87 3.99 1.5 3.93 3.98 3.93 -2.0 4.01 -2.7 4.12 -1.0

Capio Nordic excl. geriatrics 2.91 7.0 2.72 2.88 2.5 2.81 2.87 2.82 -0.4 2.83 -3.4 2.93 -2.7

Capio France 4.31 -4.9 4.53 4.30 -3.6 4.46 4.30 4.42 -1.1 4.47 -3.0 4.61 -2.9

Capio France excl. geriatrics 4.23 -4.3 4.42 4.22 -3.2 4.36 4.22 4.32 -2.5 4.43 -3.7 4.60 -3.2

Capio Germany 4.70 -2.7 4.83 4.56 -1.1 4.61 4.52 4.56 0.4 4.54 -1.5 4.61 -4.4

Capio Germany excl. geriatrics 3.91 -6.0 4.16 3.92 -2.5 4.02 3.91 3.99 -1.2 4.04 -3.1 4.17 -6.1

Capio Group 4.30 -2.5 4.41 4.26 -2.1 4.35 4.25 4.32 -1.1 4.37 -2.7 4.49 -3.0

Capio Group excl. geriatrics 3.86 -3.0 3.98 3.85 -2.5 3.95 3.85 3.92 -2.2 4.01 -3.4 4.15 -4.2

1 Refer to page 34 for definition.

The Group’s strategic focus on Modern Medicine giving

Rapid Recovery, and Modern Management reduced AVLOS

by 2.5% despite higher case mix. Adjusted for geriatrics, the

AVLOS reduction for the Group was 3.0%. In Capio Nordic

AVLOS was impacted by a significantly higher case mix in the

emergency and geriatrics businesses. In Capio Germany

AVLOS was positively impacted by a lower case mix.

Considering the combined higher case mix, in addition to the

increase from geriatrics, the AVLOS development was well in

line with the historical downward trend.

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

22,000

24,000

23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41

2017 2018

Consultations

The number of digital visits is presented on a weekly rolling twelve month basis to reflect the dynamics of the growing operations and to level out impacts from

seasonality of patient visits. The current going rate calculated on a weekly basis is about 40,000 visits/year.


Group development

Capio Group JUL - SEP

JAN - SEP FULL YEAR


KPI; Production, productivity and resources Number of outpatients 1,151.4 1,093.6 5.3 3,693.3 3,524.2 4.8 5,034.4 4,865.3

Number of inpatients 50.6 49.9 1.4 165.6 166.7 -0.7 223.2 224.3

Number of patients, kNumber 1,202.0 1,143.5 5.1 3,858.9 3,690.9 4.6 5,257.6 5,089.6

AVLOS, Days 4.30 4.41 -2.5 4.26 4.35 -2.1 4.25 4.32

Number of employees (FTE) 13,553 13,166 2.9 13,657 13,218 3.3 13,644 13,314

Income statement

Net sales outpatients 2,002 1,820 10.0 6,338 5,827 8.8 8,491 7,980

Net sales inpatients 1,549 1,422 8.9 5,036 4,713 6.9 6,710 6,387

Net sales other 265 213 24.4 777 710 9.4 1,027 960

Net sales 3,816 3,455 10.4 12,151 11,250 8.0 16,228 15,327


Organic sales growth, % 2.1 2.2 1.6 2.0 2.0 2.4

EBITDA 189 168 12.5 782 766 2.1 1,130 1,114

Margin, % 5.0 4.9 6.4 6.8 7.0 7.3

EBITA 66 53 24.5 415 427 -2.8 647 659

Margin, % 1.7 1.5 3.4 3.8 4.0 4.3

Profit for the period1 -54 -7 -671.4 145 215 -32.6 300 370

Earnings per share after dilution, SEK2 -0.36 -0.03 1.05 1.53 2.14 2.62 July – September 2018

Organic sales growth was driven by volume growth and a

higher case mix. Price growth was limited, but improved to last

year mainly following a lower price pressure in France and part

of the Swedish specialist care operations. Acquisitions and

changes in exchange rates impacted total sales growth

positively. At comparable exchange rates total sales growth

was 5.7% (9.1).

The result development was positively impacted by Nordic

and France, partly following improvements from the actions

initiated during H2 2017, and supported by effects from the

group procurement project. The ongoing German restructur-

ing impacted the development negatively during the quarter

as foreseen, as volumes were low and costs too high follow-

ing doctor turnover. Visible effects are expected during 2019.

The operating result (EBIT) included amortization on surplus

values of MSEK -28 (-27) and restructuring and other non-

recurring items and acquisition related costs of MSEK -77 (-8).

Restructuring and other non-recurring items were related to the

ongoing projects in France, including impairment of two existing

hospital properties of in total MSEK -45 (refer to note 3 for further

information), and an adjustment of the expected purchase price

for the remaining shares in a Nordic acquisition, as well as a

minor part of the costs related to the public cash offer for Capio

by Ramsay GdS and the previously planned divestment of Capio

France (MSEK -17). The remaining part of the advisory and

transaction costs related to the cash offer and the earlier

planned divestment will be accounted for in Q4 (including the

cost-coverage fee of MEUR 5.0 payable to Vivalto Santé), in

total estimated at approximately MSEK -135.

The profit for the period included net financial items of MSEK

-30 (-26) and income tax of MSEK 14 (1). Net financial items

were impacted by the higher net debt and the extended and

expanded group credit facility compared to last year. The

effective income tax rate was 20% (13%).

Earnings per share (EPS) after dilution was SEK -0.36

(-0.03), negatively impacted by restructuring and other non-

recurring costs.

1 Attributable to parent company shareholders. 2 Refer to note 2 for calculation of earnings per share (before and after dilution).


Organic sales growth was driven by volume growth and a high-

er case mix. Price growth was limited, but improved to last year

mainly following a lower price pressure in France and part of

the Swedish operations. Outpatient volume growth was

positive in all segments, while inpatient volume growth in the

Nordic segment could not compensate for lower volumes in

Germany and France. Acquisitions and changes in exchange

rates impacted total sales growth positively. At comparable ex-

change rates total sales growth was 4.6% (7.5).

The result development was positively impacted by the

Nordic segment, which is continuing its solid improvement,

and the French segment, which improved in a weak market.


actions initiated during H2 2017 and supported by effects

from the group procurement project, which are now becoming

visible in the result. Investments in the digitalization of health-

care are continuing and the result impact of the new digital

services was MSEK -30 vs. the first nine months 2017. The

development in Germany was weak following a widespread

flu outbreak in Q1 (estimated impact of MSEK -20 and MSEK

-15 on net sales and result respectively), a high doctor

turnover impacting volumes and costs negatively, and a

negative price development.

The operating result (EBIT) included amortization on surplus

values of MSEK -82 (-79) and restructuring and other non-

recurring items and acquisition related costs of MSEK -73 (-13).

Restructuring and other non-recurring items were related to the

ongoing projects in France, including impairment of two existing

hospital properties of in total MSEK -45 (refer to note 3 for further

information), the restructuring program in Germany, an

adjustment of the expected purchase price for the remaining

shares in a Nordic acquisition and a minor part of the costs

related to the public cash offer for Capio by Ramsay GdS and

the earlier planned divestment of Capio France (MSEK -17).

The profit for the period included net financial items of MSEK

-93 (-74) and income tax of MSEK -22 (-45). Net financial items

were impacted by the higher net debt and the extended and

expanded group credit facility compared to last year. The

effective income tax rate was 13% (17%).

Earnings per share (EPS) after dilution was SEK 1.05

(1.53). The development was impacted by the lower result.


Development in the segments

Capio Nordic JUL - SEP JAN - SEP FULL YEAR


KPI; Production, productivity and resources Number of outpatients 946.5 895.6 5.7 3,038.6 2,898.0 4.9 4,161.0 4,020.4

Number of inpatients 14.3 13.3 7.5 45.0 42.3 6.4 59.5 56.8

Number of patients, kNumber 960.8 908.9 5.7 3,083.6 2,940.3 4.9 4,220.5 4,077.2

AVLOS, Days 4.08 3.87 5.4 3.99 3.93 1.5 3.98 3.93


Income statement

Net sales outpatients 1,542 1,424 8.3 4,810 4,473 7.5 6,457 6,120

Net sales inpatients 626 549 14.0 1,983 1,767 12.2 2,615 2,399

Net sales other 45 34 32.4 139 131 6.1 184 176

Net sales 2,213 2,007 10.3 6,932 6,371 8.8 9,256 8,695


Organic sales growth, % 2.6 4.3 2.8 3.8 3.3 4.1

EBITDA 172 153 12.4 497 447 11.2 682 632

Margin, % 7.8 7.6 7.2 7.0 7.4 7.3

EBITA 127 107 18.7 354 313 13.1 500 459

Margin, % 5.7 5.3 5.1 4.9 5.4 5.3

Cash flow

Net capital expenditure -31 -37 -103 -105 -178 -180

In % of net sales 1.4 1.8 1.5 1.6 1.9 2.1

Capio Nordic July – September 2018

Organic sales growth was mainly driven by volume growth in

the emergency and orthopedic operations in Sweden. The

emergency care operation was positively impacted by

increased patient flows and a higher case mix. The number of

patient visits and total sales growth was positively impacted

by acquisitions. At comparable exchange rates total sales

growth was 9.1% (16.8).

The solid result development continued and all Swedish

business areas contributed to the development. In total,

acquired businesses continued to contribute to the result in

line with expectations. The investments in the digitalization of

healthcare continued and the result impact related to the new

digital services amounted to MSEK -12 in Capio Go and

Capio Proximity Care compared to MSEK -2 in Q3 2017.

From June 1, Capio Go is reimbursed for digital doctor

consultations with SEK 570/visit on a net basis.

AVLOS was impacted by a significantly higher case mix in

the emergency and geriatrics businesses. The number of

FTEs increased mainly due to the acquisitions.

Net capital expenditure (net capex) mainly comprised

maintenance capex.

Capio Nordic January – September 2018

Organic sales growth was mainly driven by volume growth

within the emergency and orthopedics operations as well as

primary care in Sweden. The emergency operation was

positively impacted by an increased patient flow and a higher

case mix. The number of patient visits and total sales growth

was positively impacted by acquisitions. At comparable

exchange rates total sales growth was 8.2% (13.9).

The solid result improvement continued, mainly by an im-

proved performance in the Swedish primary care operation,

the emergency operation in Stockholm and parts of the spec-

ialist care activities. In total, acquired businesses continued to

contribute to the result in line with expectations. The invest-

ments in the digitalization of healthcare are continuing and

during the first nine months the result impact of the new

digital services was MSEK -30 in Capio Go and Capio

Proximity Care compared to the same period 2017.

AVLOS was impacted by a significantly higher case mix in

the emergency and geriatrics businesses. The number of

FTEs increased mainly due to the acquisitions.


maintenance capex and was in line with last year.

Quarterly development from the third quarter 2017 to the third quarter 2018

Net sales and sales growth (RTM)

EBITDA and margin (RTM)

EBITA and margin (RTM)

0

3

6

9

12

15

5,000

6,000

7,000

8,000

9,000

10,000

Q3 Q4 Q1 Q2 Q3

2017 2018Net salesOrganic sales growth, %Total sales growth, %

MSEK %

4

5

6

7

8

9

200

300

400

500

600

700

Q3 Q4 Q1 Q2 Q3

2017 2018

EBITDA Margin, %

MSEK %

3

4

5

6

7

8

100

200

300

400

500

600

Q3 Q4 Q1 Q2 Q3

2017 2018

EBITA Margin, %

MSEK %


Development in the segments (cont.)

Capio France JUL - SEP JAN - SEP FULL YEAR


KPI; Production, productivity and resources Number of outpatients 150.5 142.5 5.6 487.5 465.9 4.6 652.9 631.3

Number of inpatients 29.9 29.7 0.7 98.0 99.4 -1.4 132.5 133.9

Number of patients, kNumber 180.4 172.2 4.8 585.5 565.3 3.6 785.4 765.2

AVLOS, Days 4.31 4.53 -4.9 4.30 4.46 -3.6 4.30 4.42

Number of employees (FTE) 5,451 5,495 -0.8 5,466 5,502 -0.7 5,462 5,490

Income statement

Net sales outpatients 406 348 16.7 1,360 1,220 11.5 1,811 1,671

Net sales inpatients 712 668 6.6 2,336 2,226 4.9 3,116 3,006

Net sales other 213 172 23.8 615 555 10.8 818 758

Net sales 1,331 1,188 12.0 4,311 4,001 7.7 5,745 5,435

Total sales growth, % 12.0 -0.7 7.7 2.1 6.5 2.3

Organic sales growth, % 2.9 -0.8 1.1 -0.4 1.5 0.4

EBITDA 47 29 62.1 349 323 8.0 497 471

Margin, % 3.5 2.4 8.1 8.1 8.7 8.7

EBITA -20 -31 35.5 156 144 8.3 238 226

Margin, % -1.5 -2.6 3.6 3.6 4.1 4.2

Cash flow


In % of net sales 5.6 4.9 4.3 3.0 5.3 4.4

Capio France July – September 2018

Organic sales growth improved in the quarter, positively

impacted by two more working days compared with the same

period last year. In general, the French market was

characterized by low volume growth. The price pressure

eased compared to last year. At comparable exchange rates

total sales growth was 2.5% (-0.8).

The result development in Q3 was positively impacted by

the staff and cost reduction program initiated in H2 2017 and

by effects from the group procurement project now visible in

the result.


maintenance capex and was above last year mainly due to

timing of expansion projects. The two hospital projects are

progressing and La Croix du Sud in Toulouse will open at the

end of October while Médipôle Lyon-Villeurbanne in Lyon will

open at the end of December. In the quarter, two existing

hospital properties were impaired with a total of MSEK -45,

recognized as non-recurring items (refer note 3 for further

information).

Capio France January – September 2018

Despite two fewer working days compared to last year, the

organic sales growth was slightly positive, driven by a total

patient growth in all seven regions. At comparable exchange

rates total sales growth was 0.9% (-0.1).


staff and cost reduction program initiated in H2 2017 and by

effects from the group procurement project now visible in the

result. The result development was positively impacted by

changes in exchange rates while the fewer number of

working days impacted negatively. Net capital expenditure (net capex) mainly comprised

maintenance capex and was above last year due to timing of

expansion projects. The two hospital projects are progressing

and La Croix du Sud in Toulouse will open at the end of

October while Médipôle Lyon-Villeurbanne in Lyon will open

at the end of December.





0

2

4

6

8

10

1,000

2,000

3,000

4,000

5,000

6,000

Q3 Q4 Q1 Q2 Q3

2017 2018

Net salesOrganic sales growth, %Total sales growth, %

MSEK %

7

8

9

10

11

12

100

200

300

400

500

600

Q3 Q4 Q1 Q2 Q3

2017 2018

EBITDA Margin, %

MSEK %

3

4

5

6

7

8

0

100

200

300

400

500

Q3 Q4 Q1 Q2 Q3

2017 2018

EBITA Margin, %

MSEK %


Development in the segments (cont.)

Capio Germany JUL - SEP JAN - SEP FULL YEAR


KPI; Production, productivity and resources Number of outpatients 54.3 55.4 -2.0 167.2 160.2 4.4 220.6 213.6

Number of inpatients 6.5 7.1 -8.5 22.6 25.1 -10.0 31.1 33.6

Number of patients, kNumber 60.8 62.5 -2.7 189.8 185.3 2.4 251.7 247.2

AVLOS, Days 4.70 4.83 -2.7 4.56 4.61 -1.1 4.52 4.56


Income statement

Net sales outpatients 54 47 14.9 168 134 25.4 223 189

Net sales inpatients 211 205 2.9 717 720 -0.4 979 982

Net sales other 7 8 -12.5 23 24 -4.2 25 26

Net sales 272 260 4.6 908 878 3.4 1,227 1,197


Organic sales growth, % -4.8 2.4 -4.7 0.8 -4.1 0.0

EBITDA -10 6 -266.7 8 63 -87.3 43 98

Margin, % -3.7 2.3 0.9 7.2 3.5 8.2

EBITA -19 -2 -850.0 -18 41 -143.9 9 68

Margin, % -7.0 -0.8 -2.0 4.7 0.7 5.7

Cash flow


In % of net sales 4.8 4.2 3.9 3.3 4.0 3.6

Capio Germany July – September 2018

Organic sales growth was negatively impacted by significantly

lower inpatient volumes and lower prices on parts of the

specialist care activity (MSEK -3). Inpatient volumes were

negatively impacted by the restructuring of doctor teams in

the general hospitals, decreasing the number of referrals and

reducing productivity. Action plans are implemented and new

medical teams are now in place in most hospitals to improve

the focus on Modern Medicine and AVLOS reduction. The

specialist activity is adjusting to the price reduction and the

shift from in to outpatient treatment. At comparable exchange

rates total sales growth was -4.3% (4.0).

Result and margin were negatively impacted by lower

volumes and prices as well as by increased costs for

temporary staff and lower productivity following the doctor

turnover. AVLOS was positively impacted by lower case mix.

New legislation on staff density in certain specialties will

be introduced in 2019. Financial impacts from this change in

regulation is currently being analyzed.

Net capex was related to maintenance.

Capio Germany January – September 2018

Organic sales growth was negatively impacted by significantly

lower inpatient volumes following a lack of doctors in some

general hospitals, and a lower price on parts of the specialist

care activity (MSEK -12). Also, the flu outbreak hit very hard

in Q1 2018 (estimated impact of MSEK -20). At comparable

exchange rates total sales growth was -3.2% (1.1).

Result and margin were negatively impacted by the lower

inpatient volumes and prices as well as by increased costs for

temporary staff and recruitment following the doctor turnover.

The result impact from the flu is estimated to approximately

MSEK -15. During Q2, an extensive restructuring program to

drive Modern Medicine was initiated in the general hospitals.

Two of the hospital managers have been changed as well as

a number of doctors in order to get full commitment to

Modern Medicine. Restructuring measures during Q2

impacted by MSEK -15 below the EBITA result.

Net capex was mainly related to maintenance and the

finalization of a refurbishment project in a general hospital.





-4

-2

0

2

4

6

800

900

1,000

1,100

1,200

1,300

Q3 Q4 Q1 Q2 Q3

2017 2018

Net sales

Organic sales growth, %

Total sales growth, %

MSEK %

2

4

6

8

10

12

20

40

60

80

100

120

Q3 Q4 Q1 Q2 Q3

2017 2018

EBITDA Margin, %

MSEK %

0

2

4

6

8

10

0

20

40

60

80

100

Q3 Q4 Q1 Q2 Q3

2017 2018

EBITA Margin, %

MSEK %


Cash flow

JUL - SEP JAN - SEP

FULL YEAR

Capio Group 2018 2017 2018 2017 RTM 2017

Net debt opening -3,910 -3,563 -3,691 -2,872 -3,704 -2,872

EBITA 66 53 415 427 647 659

Capital expenditure -118 -109 -338 -272 -591 -525

Divestments of fixed assets 0 1 12 12 48 48


In % of net sales 3.1 3.1 2.7 2.3 3.3 3.1

Add-back depreciation 123 115 367 339 483 455

Net investments 5 7 41 79 -60 -22

Change in net customer receivables 86 56 -70 -84 -107 -121

Other changes in operating capital employed -319 -189 -263 -223 -112 -72

Operating cash flow -162 -73 123 199 368 444

Cash conversion, % -245.5 -137.7 29.6 46.6 56.9 67.4

Income taxes paid -21 -33 -43 -70 -65 -92

Free cash flow before financial items -183 -106 80 129 303 352

Cash conversion, % -277.3 -200.0 19.3 30.2 46.8 53.4

Net financial items paid -31 -27 -82 -73 -103 -94

Free cash flow after financial items -214 -133 -2 56 200 258

Cash conversion, % -324.2 -250.9 -0.5 13.1 30.9 39.2

Acquisitions and divestments of operations -367 -5 -460 -685 -560 -785

Received/paid restructuring and other non-recurring items -40 -3 -77 -11 -84 -18

Shareholder transactions -2 -2 -138 -130 -137 -129

Net cash flow -623 -143 -677 -770 -581 -674

Cash conversion, % -943.9 -269.8 -163.1 -180.3 -89.8 -102.3

Other items 4 2 -161 -62 -244 -145

Net debt closing -4,529 -3,704 -4,529 -3,704 -4,529 -3,691 Cash flow July – September 2018

Net investments were in line with last year. Changes in

working capital were impacted by seasonal and timing

effects.

The decrease of income tax paid was mainly related to

lower tax installments in France. Net financial items paid

increased due to a higher net debt.

The outflow from acquisitions was mainly related to the

acquisition of Legevisitten (Nordic). Received/paid restruc-

turing and other non-recurring items were mainly related to

the ongoing projects in France and Germany combined with

payments related to the public cash offer by Ramsay GdS

and the previously planned divestment of Capio France.

Cash flow January – September 2018

Capex increased to last year following timing effects of

maintenance capex, acquisitions, some expansion projects in

France and Germany supporting business growth and

changes in exchange rates. Depreciation increased to last

year, impacted by higher capex, recent acquisitions and

changes in exchange rates. Changes in other operating

capital employed were impacted by seasonal and timing

effects while the lower income tax paid mainly was due to

lower tax installments in France. The increase in net financial

items paid was related to a higher net debt.

The outflow from acquisitions was mainly related to the

Nordic segment (Legevisitten and Novakliniken) and outpatient

authorizations in Germany. Received/paid restructuring and

other non-recurring items were mainly related to the ongoing

projects in France and Germany and payments related to the

public cash offer by Ramsay GdS and the previously planned

divestment of Capio France. Shareholder transactions mainly

comprised the dividend paid. Other items affecting net debt

were mainly related to changes in exchange rates.


Net capex and in % of net sales (RTM)

Operating CF and cash conversion (RTM)

Free CF after fin. items and cash conv. (RTM)

0

1

2

3

4

5

100

200

300

400

500

600

Q3 Q4 Q1 Q2 Q3

2017 2018

Net capital expenditure

In % of sales

MSEK %

30

50

70

90

110

130

100

200

300

400

500

600

Q3 Q4 Q1 Q2 Q3

2017 2018

Operating cash flow

Cash conversion, %

MSEK %

30

40

50

60

70

80

0

100

200

300

400

500

Q3 Q4 Q1 Q2 Q3

2017 2018

Free cash flow after fin. items

Cash conversion, %

MSEK %


Capital employed and financing 2018 2017

Capio Group 30 Sep 31 Dec 30 Sep

Operating fixed assets (excl. real estate) 1,705 1,640 1,456

Net customer receivables 1,656 1,474 1,435

Other operating assets and liabilities -2,060 -2,106 -1,889

Operating capital employed 1 1,301 1,008 1,002

In % of net sales 8.0 6.6 6.7

Operating real estate 760 771 765

Operating capital employed 2 2,061 1,779 1,767

In % of net sales 12.7 11.6 11.8

Other capital employed 8,313 7,668 7,470

Capital employed 10,374 9,447 9,237

Return on capital employed, % 6.2 7.0 6.6

Net debt 4,529 3,691 3,704

Financial leverage 4.0 3.3 3.5

Equity 5,845 5,756 5,533

Total financing 10,374 9,447 9,237

Capital employed as of September 30, 2018

The increase in operating fixed assets compared with

December 31, 2017 was mainly related to changes in

exchange rates. The increase in net customer receivables

was mainly due to higher activity in September 2018

compared with December 2017, a slightly higher DSO as well

as the acquisitions of Legevisitten and Novakliniken. The

change in other operating assets and liabilities was mainly

due to seasonal and timing effects combined with changes in

exchange rates. The decrease of operating real estate was

mainly due to the impairment of two French hospital

properties which was almost off-set by changes in exchange

rates and a refurbishment project in one of the German

hospitals.

Compared with December 31, 2017, other capital emp-

loyed was mainly impacted by changes of acquisition related

surplus values and exchange rates. The return on capital

employed was 6.2% (7.0 as of December 31, 2017) and was

negatively impacted by effects from acquisitions (not included

twelve months in the RTM EBITA).

Financing as of September 30, 2018

The net debt increase compared with December 31, 2017,

was mainly due to changes in exchange rates (impact of

MSEK -118) and the net effect from acquisitions and divest-

ments (MSEK -460). The visible financial leverage increased

from 3.3x at year-end 2017 to 4.0x at September 30, 2018,

mainly impacted by acquisitions and the weak Swedish

krona. If adjusted for the full year effect of acquisitions the

financial leverage was 3.8x (3.2).

During Q1 2018 an amendment and extension of the

Group’s MEUR 235 revolving credit facility (RCF) was

completed, see page 13 for more information.

The financing facility of the Group contains two financial

covenants; one covenant with a maximum financial leverage

and one covenant with a minimum interest cover. As of

September 30, 2018 Capio was in compliance with both

covenants.


Operating capital employed and in % of net sales

Capital employed and ROCE

Net debt and financial leverage

9

10

11

12

13

14

1,600

1,700

1,800

1,900

2,000

2,100

Q3 Q4 Q1 Q2 Q3

2017 2018

Operating capital employed

In % of net sales

MSEK %

5

6

7

8

9

10

6,000

7,000

8,000

9,000

10,000

11,000

Q3 Q4 Q1 Q2 Q3

2017 2018

Capital employed

Return on capital employed

MSEK %

2.0

2.5

3.0

3.5

4.0

2,500

3,000

3,500

4,000

4,500

Q3 Q4 Q1 Q2 Q3

2017 2018

Net debt

Financial leverage

MSEK x


Significant events during the period

Acquisitions, January – September 2018

Acquisition of Swedish healthcare group Legevisitten

As announced on July 11, 2018, Capio has acquired 100% of

Legevisitten with specialist and primary care activities in

Sweden. The acquisition increases Capio’s capacity within

geriatrics and related services for the elderly patients in the

Stockholm area and strengthens Capio’s position facing the

geriatric free healthcare choice introduction in Stockholm in

2019. The acquisition added about 82,000 listed patients to

Capio’s base of recurring primary care patients, which further

supports Capio’s digi-physical offering with digital consulta-

tions and a broad network of physical primary care units.

In 2017, Legevisitten’s net sales were MSEK 613, of which

90% was related to free healthcare choice and 10% to

tendered contracts. Enterprise value is MSEK 365. The

acquisition was closed on September 3 and the operations

are consolidated in Capio from September 1, 2018. Synergy

effects, mainly on the administrative side by utilizing more

shared services and procurement, are expected to be

realized from 2019 with full impact in 2020. The acquisition of

Legevisitten is expected to be accretive on an earnings per

share basis from 2019.

Selected financials for significant acquisitions closed as of September 30, 20181 Legevisitten

Share of voting rights and equity, %

Date of consolidation September 1

Capio segment Nordic

Country of operation Sweden

Enterprise value 365

Yearly net sales (2017) 613

Contribution to net sales since consolidation 57

Contribution to operating result (EBIT) since consolidation 2

Goodwill 252

Acquisition related intangible assets 115

1 Refer to note 5 for further information about acquisitions during the period.

Other significant events, January – September 2018

Rejection of the initial public cash offer from Ramsay

Générale de Santé

On July 13, 2018 Ramsay GdS announced a public offer to

the shareholders in Capio to sell all of their shares to Ramsay

GdS at a price of SEK 48.50 per share. As announced in a

press release on the same day, Capio’s Board of Directors

unanimously rejected the offer. Refer to Significant events

after the period for more information about the increased

public offer by Ramsay GdS, which is being recommended by

the Capio Board of Directors.

Possible repositioning of Capio towards the Nordic

markets

On June 25, 2018, Capio announced that there were ongoing

discussions relating to possible divestments of its non-Nordic

operations. On August 21, 2018, Capio announced the

proposed sale of Capio France to Vivalto Santé, refer to the

press releases of August 21 and September 25, 2018 for

more information. The completion of the transaction was

subject to certain conditions, including the approval of

Capio’s shareholders at an EGM, as required under Swedish

takeover regulation. Refer to Significant events after the

period for more information about the previously planned

divestment of Capio France and the EGM (notice published

on September 25), which has now been withdrawn/cancelled

as the Capio Board recommends shareholders to accept the

increased public offer by Ramsay GdS.

Attila Vegh was appointed new CEO

On June 21, 2018 Capio announced that the Board of

Directors appointed Attila Vegh as new President and CEO of

Capio. Attila joined Capio on September 1, 2018 and took

over the CEO responsibility from Thomas Berglund as of

October 1, 2018.

Loss of two outsourcing contracts in Stockholm

As announced on April 11, 2018, the Stockholm County

Council (SCC) has resolved to award the contract to run

acute geriatric activities at Dalen’s hospital in Stockholm and

the contract to run specialized addiction treatment in SCC

(today Capio Maria) respectively to other healthcare providers

when the current contract periods end. The current acute

geriatric contract expires on October 31, 2018 while the

contract for specialized addiction treatment ends on Decem-

ber 31, 2018. Capio appealed against the decision to award

the specialized addiction treatment in SCC to another

healthcare provider but the appeal was rejected and the

contract with the new healthcare provider has now been

signed.

The loss of the contracts is expected to impact the

Group’s financial development in 2019 negatively with

combined annual net sales of around MSEK 470 and EBITA

of around MSEK 40. The loss of the contracts will not

significantly impact the Group in 2018.

Over time, the share of contracts in % of total net sales

has decreased and the trend is towards more free healthcare

choice where the patient is free to choose healthcare provider

based on quality and availability.

https://capio.com/en/media/newsroom/press-releases/2018/capio-announces-the-proposed-sale-of-capio-france-to-vivalto-sante/

https://capio.com/en/media/newsroom/press-releases/2018/capio-announces-notice-of-extraordinary-general-meeting-and-information-on-the-use-of-proceeds-from-the-proposed-sale-of-capio-france/

https://capio.com/en/media/newsroom/press-releases/2018/extraordinary-general-meeting-in-capio-ab-publ/


Significant events during the period (cont.)

Capio Sweden’s current contract portfolio has the following

maturity structure (net sales, MSEK)1:

2018 2019 2020 2021-2025 2026 2027

6002 200 300 250 2,0503 50

1 Rounded to even fifties and incl. extension options. 2 Incl. Capio Geriatrics Dalen and Capio Maria with combined net sales of

MSEK 470. 3 Mainly Capio S:t Göran with final maturity in 2026 (incl. extension option).

Over the next five years, the market potential for new contracts in Sweden is estimated to around MSEK 1,250, of

which submitted bids and ongoing tenders are around MSEK 350 and the potential for new contracts during 2019-2022 is MSEK 900 (source: Capio market studies).

In addition, the SCC has resolved to introduce free health-

care choice according to the act (2008:962) on System of

choice (Sw: Lag om valfrihetssystem, LOV) for geriatric out

and inpatient care – Care Choice Geriatrics for healthcare

providers with own facilities – from May 1, 2019. This will

complement Capio’s remaining advanced homecare and

palliative care operations at Dalen’s hospital, which are not

part of the lost contract, and the acute geriatric, advanced

homecare, and palliative care activities at Nacka hospital. Based on our experience in providing healthcare for

elderly patients and to increase our preparedness for the free

healthcare choice introduction, Capio will further specialize its

offering within these specialties, including new concepts and

strengthening of care chains to attract patients. For example,

Capio is currently developing a facility project, establishing a

brand new specialized hospital North West of Stockholm with

a combined offering for elderly patients.

In 2017, SCC’s cost for geriatric care was around MSEK

2,000 (source: Hälso- och sjukvårdsförvaltningen i SLLs

Årsredovisning 2017).

Other events during the period

Capio awarded contract to run specialist care in Motala

In January 2018, it was announced that Capio had been

awarded a new contract to run the orthopedic, general

surgery and anesthesia operations at the hospital in Motala,

Sweden. The resolution was appealed by a competitor and in

April the court ruled in favor of the competitor. Capio and

Region Östergötland appealed to reverse the decision and in

June the administrative court of appeal in Jönköping granted

leave to appeal. In October the administrative court of appeal

ruled in favor of Capio and Region Östergötland and Capio

has now signed the contract with Region Östergötland. The

new contract is a four + two + two year contract, valid from

April 1, 2019, with annual net sales of about MSEK 200. The

contract is not expected to significantly impact the Group’s

earnings in 2019.

Capio awarded contract to run psychiatric care in

Stockholm

In June 2018, it was announced that Capio had been awar-

ded a new contract to run psychiatric out and inpatient spec-

ialist care in Stockholm, Sweden. The new contract is a four

year contract, valid from January 1, 2019, with annual net

sales of about MSEK 40. The contract is not expected to

significantly impact the Group’s earnings in 2018.

Tariffs for healthcare reimbursement in France 2018

On February 26, 2018 the French government announced

that tariffs to reimburse healthcare were being decreased by

1.2% from March 1, 2018, compared to 2017 tariff levels. The

price reduction was slightly better than Capio’s expectations

for the French market for 2018 and significantly lower than

the price reductions in 2015-2017 of 2.1-2.5% per year. The

new prices are valid until February 28, 2019.

In March, the French government announced that they

would retrospectively reimburse an additional part of the

volume component of the 2017 price reduction due to

updated statistics about healthcare expenditures in France in

2017. This was paid as a one-off payment during April – June

2018. The positive result impact for Capio of around MEUR 1

was recognized in the January – March 2018 result. In

addition, the French president Macron stated in a TV interview

in April that there will be no more savings on hospitals in the

coming four years (source: rmc.bfmtv.com).

Acquisition of Swedish primary care group Novakliniken

As announced on February 26, 2018, Capio has acquired

100% of Novakliniken with operations in the southeastern

parts of Skåne, Sweden. Enterprise value was MSEK 88 and

the acquisition was closed on April 3, 2018. Novakliniken

operates eight primary care centers and two branches, and

provides some occupational health and dental services. 2017

net sales were MSEK 245. The acquisition of Novakliniken

complements and strengthens Capio’s presence and

healthcare offering in Skåne. The acquisition is not expected

to significantly impact the Group’s earnings in 2018.

Amendment and extension of Revolving Credit Facility

As announced on January 17, 2018, Capio has completed an

amendment and extension of its MEUR 235 revolving credit

facility (RCF), which is part of the total Group financing facility

of MEUR 500. The agreement includes a 2.5 year extension

as well as an increase of the RCF of MEUR 108. All other

terms have remained unchanged. The agreement will not

significantly impact the Group’s financial items in 2018.

http://rmc.bfmtv.com/mediaplayer/video/pas-d-economie-sur-les-hopitaux-le-plaidoyer-d-emmanuel-macron-pour-les-services-de-sante-1060163.html


Significant events after the period

Capio’s Board of Directors unanimously recommends the

public cash offer by Ramsay GdS and cancelled the

announced EGM

Following the cash offer from Ramsay Générale de Santé on

July 13, 2018, of SEK 48.50 per share (the “Initial Offer”),

Ramsay GdS announced an increased cash offer of SEK 58

per share (the “Increased Offer”) to the shareholders in Capio

on October 8, 2018. The Increased Offer represents a

premium of approximately 39% to the closing price of SEK

41.80 per share on Nasdaq Stockholm on July 12, 2018 (the

last trading day prior to the announcement of the Initial Offer),

a premium of approximately 14% to the closing price of SEK

50.80 per share on Nasdaq Stockholm on October 5, 2018,

and an increase of approximately 20% from the Initial Offer by

Ramsay GdS of SEK 48.50 per share on July 13, 2018. On

October 10, 2018, Ramsay GdS decided to lower the

acceptance level condition to 75% (on a fully diluted basis).

As announced on October 10, 2018 the Board of Capio

unanimously recommends the shareholders in Capio to

accept the Increased Offer. As a result, the Board also

decided to withdraw its proposal regarding the sale of Capio

France and consequently cancelled the extraordinary general

meeting to resolve on such a sale. For more information

about the public cash offer, refer to www.ramsaygds.se/en

and Capio’s press release of October 10, 2018 available on

www.capio.com.

On October 26, 2018, Ramsay GdS announced that as of

October 25, 2018 (when the acceptance period initially

expired) the offer had been accepted by shareholders holding

a total of 135,532,943 shares, corresponding to approximately

96% of the total number of shares and votes in Capio.

Ramsay GdS concluded in the press release that all

conditions for the completion of the offer had now been

satisfied and that Ramsay GdS is completing the offer. At the

same time, Ramsay GdS announced that the acceptance

period had been extended to November 7, 2018 in order to

give remaining shareholders an additional possibility to accept

the offer.

Other events after the period

VAT treatment of hiring of healthcare staff

On October 25, 2018 the Swedish Tax Authority published an

opinion about the VAT treatment of hiring of healthcare staff.

The opinion lays down that private healthcare providers are to

pay VAT when hiring staff from employment service

companies (both traditional staffing companies and self-

employed medical staff) and is based on a ruling by the

Swedish Supreme Administrative Court in June this year. The

conclusion of the Supreme Administrative Court made clear

that it is the hiring as such that is to be assessed and not the

service provided by the temporary staff (healthcare services

are exempt from VAT). The Swedish Tax Authority will apply

its new position in this matter from July 1, 2019. Capio

estimates the gross VAT exposure of its Swedish operations

due to the change in interpretation to about MSEK 173.

Mitigating actions have been prepared and initiated and will

now be reinforced, why the net VAT exposure is not expected

to have a significant negative impact on the Group’s earnings

going forward.

http://www.ramsaygds.se/en

https://capio.com/en/media/newsroom/press-releases/2018/the-board-of-capio-unanimously-recommends-shareholders-of-capio-to-accept-the-increased-cash-offer-from-ramsay-gds-and-cancels-the-announced-egm/

https://capio.com/en/media/newsroom/press-releases/2018/the-board-of-capio-unanimously-recommends-shareholders-of-capio-to-accept-the-increased-cash-offer-from-ramsay-gds-and-cancels-the-announced-egm/

https://www.skatteverket.se/omoss/press/pressmeddelanden/2018/2018/momsskabetalasviduthyrningavvardpersonal.5.22501d9e166a8cb399f15.html


Risks and uncertainties

Political, operational and financial risks

The Group is exposed, through its international operations, to

a variety of risks that may give rise to fluctuation in profit/loss,

other comprehensive income and cash flow. Key areas of risk

encompass political, operational and financial risks. Various

policies govern the management of key risks. Refer to the

Capio Annual Report 2017 for a further description of risks

and risk management.

Seasonal variations

The Group’s net sales and operating result fluctuate across

the year, mainly due to lower elective (planned) activity during

the summer period and lower activity during the holiday

season at the end of the year. Operations are also impacted

by e.g. Easter holiday and bank holidays, whichever could

occur in different months/quarters in different years. The

Group’s cash flow is normally stronger in the second half of

the year, impacted by some seasonal effects including

improvements in working capital. The above factors should be

taken into consideration when making assessments on the

basis of interim financial information.


Condensed financial reports

Condensed statement of comprehensive income – Capio Group


2018 2017 2018 2017 RTM 2017

Net sales 3,816 3,455 12,151 11,250 16,228 15,327

Direct costs -3,262 -2,960 -10,215 -9,423 -13,555 -12,763

Gross result 554 495 1,936 1,827 2,673 2,564

Administrative expenses -488 -442 -1,521 -1,400 -2,026 -1,905

EBITA 66 53 415 427 647 659

Amortization on surplus values -28 -27 -82 -79 -110 -107

Restructuring and other non-recurring items and acquisition related costs -77 -8 -73 -13 -72 -12

Operating result (EBIT) -39 18 260 335 465 540

Net interest -22 -19 -67 -57 -88 -78

Other financial items -8 -7 -26 -17 -33 -24

Profit after financial items -69 -8 167 261 344 438

Income tax 14 1 -22 -45 -43 -66

Profit for the period -55 -7 145 216 301 372

EBITDA 189 168 782 766

1,130 1,114

Other comprehensive income that will be reclassified into profit/loss:

Hedge effect in foreign investment -5 3 28 -10 22 -16

Translation differences -45 -43 141 5 252 116

Other comprehensive income that will be reclassified into profit/loss, net of income tax -50 -40 169 -5

274 100

Other comprehensive income that will not be reclassified into profit/loss:

Revaluation of defined benefit plans -13 -7 -108 -19 -155 -66

Income taxes related to other comprehensive income 3 1 22 3 32 13

Other comprehensive income that will not be reclassified into profit/loss, net of income tax -10 -6 -86 -16

-123 -53

Total comprehensive income for the period, net of income tax -115 -53 228 195 452 419

Profit attributable to:

Parent Company shareholders -54 -7 145 215 300 370

Non-controlling interest -1 0 0 1 1 2

-55 -7 145 216 301 372

Total comprehensive income attributable to:

Parent Company shareholders -114 -52 229 196 451 418

Non-controlling interest -1 -1 -1 -1 1 1

-115 -53 228 195 452 419

Earnings per share1:

Earnings per share before dilution, SEK -0.38 -0.05 1.03 1.52 2.13 2.62

Earnings per share after dilution, SEK -0.36 -0.03 1.05 1.53 2.14 2.62

1 Refer to note 2 for calculation of earnings per share (before and after dilution).


Condensed financial reports (cont.)

Condensed balance sheet – Capio Group

2018 2017

30 Sep 31 Dec 30 Sep

Intangible assets 8,897 8,210 7,966

Tangible fixed assets 2,473 2,465 2,309

Financial fixed assets 745 712 707

Total fixed assets 12,115 11,387 10,982

Inventories 294 267 258

Accounts receivables - trade 890 889 805

Short-term investments and interest-bearing receivables 4 2 2

Cash and cash equivalents 218 283 173

Other current assets 1,509 1,219 1,268

Total current assets 2,915 2,660 2,506

Total assets 15,030 14,047 13,488

Equity attributable to Parent Company shareholders 5,823 5,731 5,509

Equity attributable to non-controlling interest 22 25 24

Total equity 5,845 5,756 5,533

Provisions for employee benefits 444 376 352

Deferred income tax liabilities 615 608 654

Long-term liabilities, interest-bearing 3,263 3,203 3,143

Long-term liabilities and provisions, non-interest-bearing 322 367 329

Total long-term liabilities and provisions 4,644 4,554 4,478

Current liabilities, interest-bearing 1,547 832 793

Accounts payable – trade 720 852 653

Current income tax liabilities 24 2 13

Accrued expenses and prepaid income 1,791 1,586 1,550

Other current liabilities 459 465 468

Total current liabilities 4,541 3,737 3,477

Total liabilities, provisions and shareholders’ equity 15,030 14,047 13,488



Condensed statement of cash flow – Capio Group


2018 2017 2018 2017 RTM 2017

Operating result (EBIT) -39 18 260 335 465 540

Reversal of depreciations/amortizations and impairments 196 144 498 424 641 567

Items not affecting cash flow1 0 0 0 -17 2 -15

Interest received and paid -31 -27 -92 -73 -113 -94

Taxes paid -21 -33 -43 -70 -65 -92

Cash flow from operating activities before changes in working capital 105 102 623 599

930 906

Change in net working capital -227 -131 -350 -315 -185 -150

Cash flow from operating activities -122 -29 273 284 745 756

Acquisition of operations -361 -3 -437 -658

-482 -703

Divestment of operations 1 3 1 32 2 33

Payment to non-controlling interest -2 -1 -4 -7 -5 -8

Acquisition/divestment of financial fixed assets - - - -13 -49 -62

Investments in tangible and intangible fixed assets -118 -109 -338 -272 -591 -525

Divestments of tangible fixed assets - 1 12 44 16 48

Cash flow from investment activities -480 -109 -766 -874 -1,109 -1,217

Increase/decrease in external loans 414 2 721 702 756 737

Amortizations -54 -37 -151 -135 -209 -193

Dividend - - -134 -127 -134 -127

Cash flow from financing activities 360 -35 436 440 413 417

Cash flow from operations -242 -173 -57 -150

49 -44

Currency differences in cash and cash equivalents -7 -1 -8 2 -4 6

Change in cash and cash equivalents -249 -174 -65 -148 45 -38

Opening balance, cash and cash equivalents 467 347 283 321

173 321

Closing balance, cash and cash equivalents 218 173 218 173 218 283

1 Related to capital gains.



Changes in shareholders’ equity – Capio Group

Share

capital

Other contributed

capital Other

reserves Translation

reserve Retained earnings

Non-controlling

interest

Share-holders'

equity

Opening balance at January 1, 2017 72 710 -147 379 4,429 29 5,472

Reclassification1 8 147 -155

Profit for the year 215 1 216

Other comprehensive income -3 -16 -2 -21

Total comprehensive income - - - -3 199 -1 195

Dividend -127 -127

Dividend to non-controlling interest -2 -2

Change in non-controlling interest -1 -4 -5

Total transactions with shareholders - - - - -130 -4 -134

Closing balance at September 30, 2017 72 718 - 376 4,343 24 5,533

Share

capital

Other contributed

capital Other



Non-controlling

interest

Share-holders'

equity

Opening balance at January 1, 2017 72 710 -147 379 4,429 29 5,472

Reclassification1 8 147 -155


Other comprehensive income 101 -53 -1 47

Total comprehensive income - - - 101 317 1 419

Dividend -127 -127

Dividend to non-controlling interest -2 -1 -3

Change in non-controlling interest -1 -4 -5


Closing balance at December 31, 2017 72 718 - 480 4,461 25 5,756

Share

capital

Other contributed

capital Other



Non-controlling

interest

Share-holders'

equity

Opening balance at January 1, 2018 72 718 - 480 4,461 25 5,756


Other comprehensive income 170 -86 -1 83

Total comprehensive income - - - 170 59 -1 228

Dividend -134 -134

Dividend to non-controlling interest -3 -2 -5


Closing balance at September 30, 2018 72 718 - 650 4,383 22 5,845

1 Reclassification is mainly related to historical actuarial gains and losses from defined benefit plans.


Parent Company

Condensed statement of comprehensive income – Parent Company


2018 2017 2018 2017 2017

Net sales 5 4 21 19 26

Gross result 5 4 21 19 26

Administrative expenses -11 -9 -34 -31 -43

Operating profit/loss -6 -5 -13 -12 -17

Financial items -3 -3 -8 -8 138

Profit/loss after financial items -9 -8 -21 -20 121

Income tax 0 - 0 - 0

Profit/loss for the period -9 -8 -21 -20 121

Other comprehensive income - - - - -

Total comprehensive income for the period, net of income tax -9 -8 -21 -20 121

Condensed balance sheet – Parent Company

2018 2017


Fixed assets 4,071 4,074 4,025

Current assets 709 854 760

Total assets 4,780 4,928 4,785

Equity 4,607 4,762 4,621

Liabilities 173 166 164

Total equity and liabilities 4,780 4,928 4,785

The Group’s Parent Company, Capio AB (publ), is not

involved in any operating activities. It only provides group

management functions.

July – September 2018

The Parent Company’s net sales and gross result in the

quarter derive from management fees charged to

subsidiaries. The administrative expenses in the quarter were

mainly related to personnel costs.

Financial items in the quarter were related to interest costs

for the convertible debenture loans issued during the third

quarter in 2016. The financial items for the full year 2017

included a group contribution received (MSEK 148) and

interest costs for the convertible debenture loans.


The Parent Company’s net sales and gross result during the

first nine months derive from management fees charged to

subsidiaries. The administrative expenses were mainly

related to personnel costs.

Financial items were related to interest costs for the

convertible debenture loans issued during the third quarter in

2016. The financial items for the full year 2017 included a

group contribution received (MSEK 148) and interest costs

for the convertible debenture loans.

As of September 30, 2018

The Parent Company’s fixed assets as of September 30,

2018 amounted to MSEK 4,071 (4,074 as of December 31,

2017) and mainly comprised shares in subsidiaries. Current

assets as of September 30, 2018 amounted to MSEK 709

(854 as of December 31, 2017) and mainly comprised of

cash and cash equivalents. The change in current assets

compared to December 31, 2017 was mainly explained by

the reduction of cash and cash equivalents due to the

payment of dividend to shareholders during the second

quarter 2018 (MSEK -134).

Shareholders’ equity as of September 30, 2018 amounted

to MSEK 4,607 (4,762 as of December 31, 2017). The

decrease compared to December 31, 2017 was mainly

explained by the paid dividend. The Parent Company’s

liabilities amounted to MSEK 173 as of September 30, 2018

(166 as of December 31, 2017) and were mainly related to

the convertible debenture loans and personnel related

accruals.


Notes

1. Accounting principles

All amounts in the interim report are stated in millions of

Swedish kronor (MSEK) if not else stated.

This report has been prepared in accordance with IAS 34

Interim Financial Reporting and applicable rules in the

Swedish Annual Accounts Act. Capio’s consolidated financial

statements are prepared in accordance with International

Financial Reporting Standards (IFRS) as endorsed by the

European Union, the Swedish Annual Accounts Act and the

Swedish Financial Reporting Board’s standard RFR 1

Supplementary Accounting Rules for Groups. Disclosures in

accordance with IAS 34.16A appear in addition to the interim

financial statements also in other parts of the interim report.

The applied accounting principles are available in Capio’s

Annual Report 2017 which is also available on the Group’s

website www.capio.com. The Parent Company’s financial

statements are prepared in accordance with chapter nine of

the Swedish Annual Accounts Act and the Swedish Financial

Reporting Board’s standard RFR 2 Accounting for Legal

Entities.

Effects of amended and revised IFRS 2018

Newly issued and changed IFRS effective for annual periods

beginning on or after January 1, 2018 that affect the Group’s

consolidated financial statements and/or disclosure

requirements are described below.

IFRS 9 Financial Instruments

IFRS 9 encompasses the accounting standard for financial

assets and liabilities, and replaces IAS 39 Financial

Instruments: Recognition and Measurement. The

implementation of IFRS 9 has, in summary, caused the

following changes to the classification and measurement of

financial instruments:

Holdings of equity instruments have historically been

reported at cost, but are in accordance with IFRS 9, valued at

their fair value through profit and loss or other comprehensive

income. The revaluation of holdings to fair value had no effect

since the cost of the asset does not deviate significantly from

its fair value.

In accordance with IFRS 9, a credit risk reserve should be

calculated and booked based on expected credit losses. The

implementation of a model that takes into account the

expected credit loss has not resulted in any change in the

value of the reserve. This is an effect of the fact that Capio

historically has included a variable of expected credit losses

in the reserve. Based on the above the Group has concluded

that the total effect from IFRS 9 in the opening balance as of

January 1, 2018 is MSEK 0.

IFRS 15 Revenue from Contracts with Customers

IFRS 15 replaces all previous requirements with regards to

revenue recognition. The standard is based on the principle

that revenue should be recognized when the control over

delivered goods or services has been transferred from the

seller to the customer. The Group has adopted the new

standard in accordance with the transition option of modified

retrospective application. The Group has evaluated the

impact from the new accounting principle on the consolidated

financial statements by identifying and analyzing essential

customer contracts for the Group companies based on the

five-step model presented in IFRS 15. Capio is applying the

same business model in all segments with minor differences

and the single most important performance obligation is to

provide healthcare services to patients. Hence, the identified

effect of implementing IFRS 15 is the same in the whole

Group. The main revenue streams for the Group are

outpatients, inpatients and other. Other revenue is mainly

small services performed and delivered in association to the

performed medical care. The Group’s recognition of revenue

according to IFRS 15 is the same compared to previous

standards. The revenue for outpatients is recognized at the

point in time when the healthcare is provided and for

inpatients the revenue is recognized over time. Revenue is

recognized to the amount that is expected to be received in

exchange for the delivered healthcare services based on the

contract parameters. The transaction price is based on tariffs

(fee for services or bundled payments) or capitation (fixed

fee/patient) for the services performed for all segments. For

contracts that include price adjustments such as production

caps, service guarantees or reimbursements, revenue is

recognized initially when there is no risk for revenue

adjustment in the next period. Based on the above the Group

has concluded that IFRS 15 has not caused any quantifiable

effect in the opening balance as of January 1, 2018.

However, there is an increase with regards to the disclosure

requirements in annual reports as well as in interim reports.

The Group’s main revenue streams are disclosed in note 6

Segments.

Effects of amended and revised IFRS 2019

IFRS 16 Leases

IFRS 16 replaces IAS 17 and will be effective for annual

periods beginning on or after January 1, 2019. The Group

has significant lease agreements for properties where the

healthcare business is conducted, which means the

implementation of IFRS 16 will have a significant effect on the

Group’s consolidated financial statements. The Group is

currently analyzing the potential effect of IFRS 16.

Other significant estimates

For critical estimates and assessments, provisions and

contingent liabilities refer to Capio’s Annual Report 2017. If

no significant events have occurred relating to the information

in the 2017 Annual Report, no further comments are made in

the interim report.


Notes (cont.)

2. Earnings per share


BEFORE DILUTION 2018 2017 2018 2017 RTM 2017

Average number of outstanding shares, Number1 141,159,661 141,159,661 141,159,661 141,159,661 141,159,661 141,159,661

Profit for the period attributable to Parent Company

shareholders net of income tax -54 -7 145 215

300 370 Adjusted profit for the period attributable to Parent

Company shareholders net of income tax2 28 22 244 286

423 465

Earnings per share before dilution, SEK2 -0.38 -0.05 1.03 1.52 2.13 2.62

Adjusted earnings per share before dilution, SEK2 0.20 0.16 1.73 2.03 3.00 3.29

1 Total number of outstanding shares as of September 30, 2018 was 141,159,661 (all common shares). 2 Refer to definitions on page 34.


AFTER DILUTION 2018 2017 2018 2017 RTM 2017

Average number of outstanding shares, Number1 144,094,983 144,094,983 144,094,983 144,094,983 144,094,983 144,094,983



308 378 Adjusted profit for the period attributable to Parent Company

shareholders net of income tax2 30 24 250 292

431 473

Earnings per share after dilution, SEK2 -0.36 -0.03 1.05 1.53 2.14 2.62

Adjusted earnings per share after dilution, SEK2 0.21 0.17 1.73 2.03 2.99 3.28

1 Average number of outstanding shares after dilution including effects from the convertible debenture loans issued during the third quarter 2016. 2 Refer to definitions on page 34.

Reconciliation of reported and adjusted profit


BEFORE DILUTION 2018 2017 2018 2017 RTM 2017



300 370 Amortization on surplus values 29 27 82 79 110 107 Restructuring and other non-recurring items and

acquisition related costs 77 8 73 13

72 12 Income tax related to adjustments -24 -6 -56 -21 -59 -24 Adjusted profit for the period attributable to Parent

Company shareholders net of income tax 28 22 244 286

423 465

JUL - SEP JAN - SEP

FULL YEAR

AFTER DILUTION 2018 2017 2018 2017 RTM 2017



308 378 Amortization on surplus values 29 27 82 79 110 107 Restructuring and other non-recurring items and

acquisition related costs 77 8 73 13

72 12 Income tax related to adjustments -24 -6 -56 -21 -59 -24 Adjusted profit for the period attributable to Parent

Company shareholders net of income tax 30 24 250 292

431 473


Notes (cont.)

3. Restructuring and other non-recurring items and acquisition related costs


2018 2017 2018 2017 RTM 2017

Divestment of operations1 - 0 - 17 -2 15

Restructuring projects including redundancies2 -18 -2 -46 -9 -47 -10

Impairments2 -46 -1 -49 -5 -49 -5

Revaluation of provisions for outstanding purchase price3 14 - 55 - 55 -

Public cash offer and proposed sale of Capio France -17 - -17 - -17 -

Other -6 -2 -6 -1 0 5

Acquisition related costs4 -4 -3 -10 -15 -12 -17

Restructuring and other non-recurring items and acquisition related costs -77 -8 -73 -13

-72 -12

1 Divestment of operations in 2017 were mainly related to a capital gain from the divestment of the hospital in Weissenburg (Germany).

2 Restructuring and impairment costs were related to ongoing structural projects in the French and German segments. The structural projects in France

refer to the ongoing constructions and refurbishments of hospital facilities as well as the upgrading of support system for the medical agenda including

redundancies as part of the ongoing actions. The restructuring costs in France in the first nine months of 2018 were mainly related to ongoing projects in

Lyon, Toulouse and La Rochelle. During the third quarter 2018 two existing hospital properties have been impaired with a total amount of MSEK -45 to

reflect the changes in market values as a consequence of the outcome in the process of building permits. The structural projects in Germany mainly

relates to redundancies as a consequence of ongoing restructuring measures to speed up implementation of Rapid Recovery with shorter lengths of stay

resulting in increasing productivity. In the first nine months of 2017 restructuring costs mainly related to the French segment but also to some structural

costs in Germany.

3 During 2017 the Group acquired 70% of the shares in CFR Hospitaler A/S with an option for Capio to acquire (and the non-controlling interest to sell) the

remaining 30% after two years. The acquired company is consolidated to 100% and a provision related to the option are recognized at fair value. During

2018, the provision has been revaluated, generating a decrease in provision with MSEK 55.

4 Acquisition related costs refer to transaction cost in connection with the Group’s acquisition of operations.

4. Financial instruments

In terms of financial assets and liabilities fair value is deemed

to be approximately equal to their book values. Derivatives

are reported as level 2 and used for the purpose of hedging

interest rates. The derivatives were valued using the mid-

point of the yield curve prevailing on the reporting date and

represent the net present value of the difference between the

contracted rate and the valuation rate. Any change in the fair

value of the interest rate cap transactions is recognized in the

income statement and amounted to MSEK 0 as of September

30, 2018. The table discloses the portion of the market value

arising from future changes in market interest rates.

2018 2017


Interest rate caps (Options) 0 -2 -1


Notes (cont.)

5. Acquisitions of operations

Capio has acquired 100% of the Swedish healthcare group Legevisitten. The acquisition was closed on September 3, 2018 and

is expected to be accretive on an earnings per share basis from 2019. Capio has also acquired 100% of the primary care group

"Novakliniken" in Sweden. The acquisition was closed on April 3, 2018 and is not expected to significantly impact the Group's

earnings in 2018. In addition, the first nine months 2018 included acquisitions of outpatient authorizations in Germany.

Acquisitions during 2018 Legevisitten Other Total

Share of voting rights and equity % 100 100 Acquired net assets1:

Capital employed 20 -22 -2

Net debt -4 29 25

Acquired net assets (excluding acquisition related intangible assets) 16 7 23 Acquisition related intangible assets 115 37 152

Deferred income tax -24 -8 -32

Goodwill 252 80 332

Total purchase price 359 116 475

Outstanding purchase price -15 - -15

Less acquired cash 2 -40 -38

Payment related to acquisitions from previous years - 15 15

Cash flow effect of acquisitions 346 91 437 Contribution to Group’s net sales and operating result:

Net sales2 57 120 177

Operating result (EBIT) 2 7 9 1 Purchase price allocations are still preliminary 2 If the acquisitions in 2018 had taken place as per January 1, 2018, the net sales pro forma during 2018 would have been MSEK 670


Notes (cont.)

6. Segments

Capio organizes its business in three operational segments:

Capio Nordic (Sweden, Norway, Denmark and Capio Go),

Capio France and Capio Germany. Each segment provides a

wide range of healthcare services and the organization is

structured to facilitate the provision of healthcare at the most

efficient care level for each patient. Further information about

the segments are found in Capio Annual Report 2017

(Business overview). The units in the segments are

consolidated in accordance with the same principles applied

for the Group as a whole. Transactions between Group

companies and business areas are conducted on a strictly

commercial basis. Other in this context relates to the Parent

Company and a number of holding companies. Within Capio

Nordic, a customer relationship based on one contract

corresponded to a total net sales of MSEK 461 during the

third quarter 2018 and MSEK 1,510 during the first nine

months 2018 (Jul-Sep 2017: MSEK 416; Jan-Sep 2017:

MSEK 1,360; Jan-Dec 2017: MSEK 1,881), which is

equivalent to more than 10% of the Group’s net sales.

Income statement


Net sales and organic sales growth 2018 % 2017 % 2018 % 2017 % RTM % 2017 %

Net sales outpatients 1,542 1,424 4,810 4,473 6,457 6,120 Net sales inpatients 626 549 1,983 1,767 2,615 2,399 Net sales other 45 34 139 131 184 176

Capio Nordic 2,213 2.6 2,007 4.3 6,932 2.8 6,371 3.8 9,256 3.3 8,695 4.1

Net sales outpatients 406 348 1,360 1,220 1,811 1,671 Net sales inpatients 712 668 2,336 2,226 3,116 3,006 Net sales other 213 172 615 555 818 758

Capio France 1,331 2.9 1,188 -0.8 4,311 1.1 4,001 -0.4 5,745 1.5 5,435 0.4

Net sales outpatients 54 47 168 134 223 189 Net sales inpatients 211 205 717 720 979 982 Net sales other 7 8 23 24 25 26

Capio Germany 272 -4.8 260 2.4 908 -4.7 878 0.8 1,227 -4.1 1,197 0.0

Other - - - - - - Eliminations - - - - - -

Capio Group 3,816 2.1 3,455 2.2 12,151 1.6 11,250 2.0 16,228 2.0 15,327 2.4

EBITDA and margin

Capio Nordic 172 7.8 153 7.6 497 7.2 447 7.0 682 7.4 632 7.3 Capio France 47 3.5 29 2.4 349 8.1 323 8.1 497 8.7 471 8.7 Capio Germany -10 -3.7 6 2.3 8 0.9 63 7.2 43 3.5 98 8.2 Other -20 -20 -72 -67 -92 -87 Eliminations - - - - - -

Capio Group 189 5.0 168 4.9 782 6.4 766 6.8 1,130 7.0 1,114 7.3

EBITA and margin

Capio Nordic 127 5.7 107 5.3 354 5.1 313 4.9 500 5.4 459 5.3 Capio France -20 -1.5 -31 -2.6 156 3.6 144 3.6 238 4.1 226 4.2 Capio Germany -19 -7.0 -2 -0.8 -18 -2.0 41 4.7 9 0.7 68 5.7 Other -22 -21 -77 -71 -100 -94 Eliminations - - - - - -

Capio Group 66 1.7 53 1.5 415 3.4 427 3.8 647 4.0 659 4.3

Operating result (EBIT) and margin

Capio Nordic 121 5.5 86 4.3 350 5.0 255 4.0 457 4.9 362 4.2 Capio France -85 -6.4 -37 -3.1 67 1.6 121 3.0 162 2.8 216 4.0 Capio Germany -25 -9.2 -7 -2.7 -50 -5.5 35 4.0 -28 -2.3 57 4.8 Other -50 -24 -107 -76 -126 -95 Eliminations - - - - - -

Capio Group -39 -1.0 18 0.5 260 2.1 335 3.0 465 2.9 540 3.5

Cash flow


Capital expenditure and in % of net sales 2018 % 2017 % 2018 % 2017 % RTM % 2017 %

Capio Nordic -32 1.4 -37 1.8 -105 1.5 -105 1.6 -180 1.9 -180 2.1

Capio France -75 5.6 -59 5.0 -195 4.5 -133 3.3 -350 6.1 -288 5.3 Capio Germany -13 4.8 -11 4.2 -35 3.9 -29 3.3 -49 4.0 -43 3.6 Other 1 -2 -4 -5 -13 -14 Eliminations - - - - - -

Capio Group -119 3.1 -109 3.2 -339 2.8 -272 2.4 -592 3.6 -525 3.4


Notes (cont.)

Balance sheet

2018 2017

Assets 30 Sep 31 Dec 30 Sep

Capio Nordic 6,477 6,218 5,708 Capio France 7,115 6,862 6,562 Capio Germany 1,569 1,484 1,467 Other 4,007 3,980 3,450 Eliminations -4,138 -4,497 -3,699

Capio Group 15,030 14,047 13,488

Liabilities

Capio Nordic 3,474 3,746 3,101 Capio France 3,803 3,690 3,566 Capio Germany 1,208 1,074 1,071 Other 4,838 4,278 3,916 Eliminations -4,138 -4,497 -3,699

Capio Group 9,185 8,291 7,955

7. Pledged assets

2018 2017

For own debts and provisions 30 Sep 31 Dec 30 Sep

Shares in subsidiaries 124 124 124

Cash and cash equivalents 21 20 7

Property mortgages 1,307 1,254 1,225

Endowment insurance 39 39 38

Total 1,491 1,437 1,394

8. Contingent liabilities

2018 2017


Guarantee and other commitments 26 23 23

Total 26 23 23

9. Non IFRS financial measures

Capio’s financial model

In order to support Capio’s strategy and managers at all

levels, Capio has developed a financial model that links

relevant Key Performance Indicators (KPI) with their

corresponding financial impact. As the model is based on the

relation between quality, productivity and financial outcomes,

the financial model supports the Group’s understanding of

what creates good healthcare and increased quality. This

allows Capio to continuously refine its healthcare processes,

enabling improved quality in healthcare provided to patients,

and concurrently, improved financial results.


Notes (cont.) Financial statements

The Group’s income statement is presented in a functional

format in order to measure the productivity from the use of

resources in relation to the production of healthcare. To

financially measure productivity, direct costs are subtracted

from net sales in order to obtain the gross result (and gross

margin). Thereafter administrative expenses (overhead costs)

are subtracted from gross result in order to obtain the operating

result (and operating margin). Gross result is the key measure

for productivity, indicating whether the Group performs

healthcare operations efficiently. Operating results adds

information as to whether the Group’s operating structure is

efficient.

The Group’s income statement includes certain restructuring

and other non-recurring items and is adjusted from the Group's

definition of EBITA. These items are mainly related to the

ongoing program in France whereby a large part of the hospital

properties are being modernized. Since this project is carried out

during a relatively limited period of time (just over 5 years)

compared to a normal cycle (the useful life of a hospital is

normally 30 years) and since it covers a considerable part of the

business, the Group has made the assessment that effects

related to the project are to be considered as restructuring and

other non-recurring items. In addition, the Group also assesses

the effects from divested and discontinuing operations outside

the core business within the definition restructuring and non-

recurring items. Correction for acquisition-related expenses is

also made in the Group's definition of EBITA as acquisition does

not occur every quarter and transaction costs and other

acquisition-related costs may be material and thus affect the

comparison between year and quarter if corrections for these

are not made.

The balance sheet is also presented in an operational

format, tracking capital employed, net debt and equity, in

order to track and manage capital needs and resources

throughout the Group. Capio’s overall goal for operating

capital management is to strike a balance between optimizing

operating capital in order to generate cash flows, while

making appropriate investments in order to grow the

business. The operating capital management integrates all

parts of the organization and requires clear and efficient

processes, such as the sales process and salary process.

Related to the Group’s operational balance sheet the cash

flow is also presented in an operational format, reconciling

changes in net debt.

To better support Capio’s financial model, the Group tracks

and presents financial measures which are not measures of

financial performance or liquidity under IFRS. Such non-IFRS

financial measures are defined on page 34 and in the

following tables reconciliations of IFRS measures and non-

IFRS measures (Additional Performance Measures, APM) are

presented. The presentation of all APMs is made to increase

the understanding of the Group's development as followed up

by Group Management.

Specification of Income statement items


2018 2017 2018 2017 RTM 2017

EBITA 66 53 415 427 647 659

whereof depreciation 123 115 367 339 483 455

EBITDA 189 168 782 766 1,130 1,114

whereof rent 221 201 651 595 856 800

EBITDAR 410 369 1,433 1,361 1,986 1,914

Reconciliation of IFRS and APM related to Balance sheet items

2018

2017


Total fixed assets, IFRS 12,115 11,387 10,982

whereof operating capital employed 2,465 2,411 2,221

whereof other capital employed 9,588 8,917 8,704

whereof net debt 62 59 57

Total current assets, IFRS 2,915 2,660 2,506


whereof other capital employed 130 119 98

whereof net debt 221 285 175

Total long-term liabilities and provisions, IFRS 4,644 4,554 4,478

whereof operating capital employed 88 86 90

whereof other capital employed 1,291 1,265 1,245

whereof net debt 3,265 3,203 3,143

Total current liabilities, IFRS 4,541 3,737 3,477


whereof other capital employed 115 104 86

whereof net debt 1,546 831 793

Operating capital employed, APM 2,061 1,779 1,767

Other capital employed, APM 8,313 7,668 7,470

Net debt, APM 4,529 3,691 3,704

Equity 5,845 5,756 5,533


Notes (cont.)

Reconciliation of IFRS and APM related to Cash flow items


2018 2017 2018 2017 RTM 2017

Cash flow from operating activities, IFRS -122 -29 273 284 745 756

Taxes paid 21 33 43 70 65 92

Interest received and paid 31 27 92 73 113 94

Restructuring items 39 8 76 35 50 9

Capital expenditure -118 -109 -338 -272 -591 -525

Divestments of fixed assets - 1 12 12 48 48

Other adjustments -13 -4 -35 -3 -62 -30

Operating cash flow, APM -162 -73 123 199 368 444


2018 2017 2018 2017 RTM 2017

Acquisition of operations -361 -3 -437 -658 -482 -703

Divestment of operations 1 3 1 32 2 33

Acquisition/divestment of financial fixed assets - - - -13 -49 -62

Acquisition and divestments of operations and financial fixed assets, IFRS -360 0 -436 -639

-529 -732

Acquisition of non-controlling interest - 0 - -4 - -4

Acquired/divested net debt and paid costs acquisition -7 -5 -24 -42 -31 -49

Acquisition and divestments of operations, APM -367 -5 -460 -685 -560 -785


2018 2017 2018 2017 RTM 2017

Investments in tangible and intangible fixed assets -118 -109 -338 -272 -591 -525

Divestments of tangible fixed assets - 1 12 44 16 48

Investments and divestments, IFRS -118 -108 -326 -228 -575 -477 Items included in received/paid restructuring and other non-recurring items - 0 - -32

32 -

Net capital expenditure, APM -118 -108 -326 -260 -543 -477


2018 2017 2018 2017 RTM 2017

Interest received and paid, IFRS -31 -27 -92 -73 -113 -94

Paid borrowing costs included in net debt - - 10 - 10 -

Net financial items paid, APM -31 -27 -82 -73 -103 -94


2018 2017 2018 2017 RTM 2017

Taxes paid, IFRS -21 -33 -43 -70 -65 -92 Items included in received/paid restructuring and other non-recurring items - - - -

- -

Income taxes paid, APM -21 -33 -43 -70 -65 -92


Signatures

The Board of Directors and the President and CEO hereby certify that the interim report gives a true and fair view of the

Parent Company’s and Group’s operations, financial position and profit/loss and describes the significant risks and uncertainties

facing the Parent Company and the companies included in the Group.

Capio AB (publ)

Gothenburg, October 29, 2018

Michael Wolf

Chairman

Attila Vegh

President and CEO

Gunnar Németh

Gunilla Rudebjer Hans Ramel

Birgitta Stymne Göransson

Michael Flemming Pascale Richetta

Joakim Rubin

Kevin Thompson

Employee representative

Julia Turner

Employee representative

This interim report has not been subject to a review by the Company’s auditors.


Quarterly overview

Income statement by quarter – Group

2018 2017 FULL YEAR

Q3 Q2 Q1 Q4 Q3 Q2 Q1 RTM 2017

Net sales outpatients 2,002 2,200 2,136 2,153 1,820 2,025 1,982 8,491 7,980

In % of net sales 52.5 52.6 51.4 52.8 52.7 52.2 50.6 52.3 52.1

Net sales inpatients 1,549 1,719 1,768 1,674 1,422 1,609 1,682 6,710 6,387

In % of net sales 40.6 41.1 42.5 41.1 41.2 41.5 43.0 41.3 41.7

Net sales other 265 260 252 250 213 247 250 1,027 960

In % of net sales 6.9 6.2 6.1 6.1 6.2 6.4 6.4 6.3 6.3

Net sales 3,816 4,179 4,156 4,077 3,455 3,881 3,914 16,228 15,327

Total sales growth, % 10.4 7.7 6.2 9.4 9.1 8.6 8.6 8.4 8.9

Organic sales growth, % 2.1 1.6 1.1 3.4 2.2 0.5 3.3 2.0 2.4

Direct costs -3,262 -3,520 -3,433 -3,340 -2,960 -3,262 -3,201 -13,555 -12,763

Gross result 554 659 723 737 495 619 713 2,673 2,564

Gross margin, % 14.5 15.7 17.4 18.1 14.3 15.9 18.2 16.5 16.7

Overhead costs -488 -521 -512 -505 -442 -477 -481 -2,026 -1,905

EBITA 66 138 211 232 53 142 232 647 659

Margin, % 1.7 3.3 5.1 5.7 1.5 3.7 5.9 4.0 4.3

Amortization on surplus values -28 -28 -26 -28 -27 -27 -25 -110 -107 Restructuring and other non-recurring items and acquisition related cost -77 13 -9

1 -8 -7 2 -72 -12

Operating result (EBIT) -39 123 176 205 18 108 209 465 540

Net interest -22 -24 -21 -21 -19 -19 -19 -88 -78

Other financial items -8 -11 -7 -7 -7 -6 -4 -33 -24

Profit after financial items -69 88 148 177 -8 83 186 344 438

Income tax 14 -13 -23 -21 1 -13 -33 -43 -66

Profit for the period -55 75 125 156 -7 70 153 301 372

EBITDAR 410 480 543

553 369 455 537 1,986 1,914

Margin, % 10.7 11.5 13.1 13.6 10.7 11.7 13.7 12.2 12.5

EBITDA 189 262 331

348 168 256 342 1,130 1,114

Margin, % 5.0 6.3 8.0 8.5 4.9 6.6 8.7 7.0 7.3


Quarterly overview (cont.)

Capital employed and financing by quarter – Group

2018 2017

30 Sep 30 Jun 31 Mar 31 Dec 30 Sep 30 Jun 31 Mar

Operating capital employed 2,061 1,917 1,996 1,779 1,767 1,669 1,594

In % of net sales 12.7 12.1 12.8 11.6 11.8 11.4 11.1

Other capital employed 8,313 7,956 7,786 7,668 7,470 7,481 7,285

Capital employed 10,374 9,873 9,782 9,447 9,237 9,150 8,879

Return on capital employed, % 6.2 6.4 6.5 7.0 6.6 7.1 7.7

Net debt 4,529 3,910 3,745 3,691 3,704 3,563 3,255

Financial leverage 4.0 3.5 3.4 3.3 3.5 3.3 2.9

Equity 5,845 5,963 6,037 5,756 5,533 5,587 5,624

Total financing 10,374 9,873 9,782 9,447 9,237 9,150 8,879

Cash flow by quarter – Group

2018

2017

FULL YEAR

Q3 Q2 Q1 Q4 Q3 Q2 Q1 RTM 2017

Net debt opening -3,910 -3,745 -3,691 -3,704 -3,563 -3,255 -2,872 -3,704 -2,872

EBITA 66 138 211 232 53 142 232 647 659

Capital expenditure -118 -104 -116 -253 -109 -85 -78 -591 -525

Divestments of fixed assets 0 10 2 36 1 0 11 48 48

Net capital expenditure -118 -94 -114 -217 -108 -85 -67 -543 -477

In % of net sales 3.1 2.2 2.7 5.3 3.1 2.2 1.7 3.3 3.1

Add-back depreciation 123 124 120 116 115 114 110 483 455

Net investments 5 30 6 -101 7 29 43 -60 -22

Change in net customer receivables 86 1 -157 -37 56 -54 -86 -107 -121

Other changes in operating capital employed -319 -19 75 151 -189 10 -44 -112 -72

Operating cash flow -162 150 135 245 -73 127 145 368 444

Cash conversion, % -245.5 108.7 64.0 105.6 -137.7 89.4 62.5 56.9 67.4

Income taxes paid -21 0 -22 -22 -33 -31 -6 -65 -92

Free cash flow before financial items -183 150 113 223 -106 96 139 303 352

Cash conversion, % -277.3 108.7 53.6 96.1 -200.0 67.6 59.9 46.8 53.4

Net financial items paid -31 -29 -22 -21 -27 -21 -25 -103 -94

Free cash flow after financial items -214 121 91 202 -133 75 114 200 258

Cash conversion, % -324.2 87.7 43.1 87.1 -250.9 52.8 49.1 30.9 39.2

Acquisitions/divestments of operations -367 -84 -9 -100 -5 -182 -498 -560 -785 Received/paid restructuring and other non-recurring items -40 -16 -21 -7 -3 -14 6 -84 -18

Shareholder transactions -2 -136 0 1 -2 -128 0 -137 -129

Net cash flow -623 -115 61 96 -143 -249 -378 -581 -674

Cash conversion, % -943.9 -83.3 28.9 41.4 -269.8 -175.4 -162.9 -89.8 -102.3

Other items 4 -50 -115 -83 2 -59 -5 -244 -145

Net debt closing -4,529 -3,910 -3,745 -3,691 -3,704 -3,563 -3,255 -4,529 -3,691



Income statement overview by quarter – Segment 2018 2017 FULL YEAR

Q3 Q2 Q1 Q4 Q3 Q2 Q1 RTM 2017

Capio Nordic

Net sales 2,213 2,410 2,309 2,324 2,007 2,211 2,153 9,256 8,695



EBITDAR 297 284 282 300 266 254 260 1,163 1,080

Margin, % 13.4 11.8 12.2 12.9 13.3 11.5 12.1 12.6 12.4

EBITDA 172 163 162 185 153 142 152 682 632

Margin, % 7.8 6.8 7.0 8.0 7.6 6.4 7.1 7.4 7.3

EBITA 127 114 113 146 107 97 109 500 459

Margin, % 5.7 4.7 4.9 6.3 5.3 4.4 5.1 5.4 5.3

Capio France

Net sales 1,331 1,468 1,512 1,434 1,188 1,379 1,434 5,745 5,435

Total sales growth, % 12.0 6.5 5.4 2.9 -0.7 3.2 3.4 6.5 2.3

Organic sales growth, % 2.9 0.0 0.8 2.7 -0.8 -1.1 0.7 1.5 0.4

EBITDAR 138 219 260 232 111 208 250 849 801

Margin, % 10.4 15.0 17.2 16.2 9.4 15.1 17.4 14.8 14.7

EBITDA 47 128 174 148 29 124 170 497 471

Margin, % 3.5 8.7 11.5 10.3 2.4 9.0 11.9 8.7 8.7

EBITA -20 64 112 82 -31 64 111 238 226

Margin, % -1.5 4.3 7.4 5.7 -2.6 4.6 7.7 4.1 4.2

Capio Germany

Net sales 272 301 335 319 260 291 327 1,227 1,197

Total sales growth, % 4.6 3.4 2.4 -0.9 3.6 1.4 4.8 2.3 2.1

Organic sales growth, % -4.8 -3.6 -5.6 -2.3 2.4 -4.6 4.6 -4.1 0.0

EBITDAR -5 3 24 38 11 16 50 60 115

Margin, % -1.8 1.0 7.2 11.9 4.2 5.5 15.3 4.9 9.6

EBITDA -10 -2 20 35 6 12 45 43 98

Margin, % -3.7 -0.7 6.0 11.0 2.3 4.1 13.8 3.5 8.2

EBITA -19 -11 12 27 -2 4 39 9 68

Margin, % -7.0 -3.7 3.6 8.5 -0.8 1.4 11.9 0.7 5.7

Other

Net sales - - - - - - - - -

EBITDAR -20 -26 -23 -17 -19 -23 -23 -86 -82

EBITDA -20 -27 -25 -20 -20 -22 -25 -92 -87

EBITA -22 -29 -26 -23 -21 -23 -27 -100 -94

Eliminations

Net sales - - - - - - - - -

EBITDAR - - - - - - - - -

EBITDA - - - - - - - - -

EBITA - - - - - - - - -

Capio Group

Net sales 3,816 4,179 4,156 4,077 3,455 3,881 3,914 16,228 15,327



EBITDAR 410 480 543 553 369 455 537 1,986 1,914

Margin, % 10.7 11.5 13.1 13.6 10.7 11.7 13.7 12.2 12.5

EBITDA 189 262 331 348 168 256 342 1,130 1,114

Margin, % 5.0 6.3 8.0 8.5 4.9 6.6 8.7 7.0 7.3

EBITA 66 138 211 232 53 142 232 647 659

Margin, % 1.7 3.3 5.1 5.7 1.5 3.7 5.9 4.0 4.3



Capital employed by quarter – Segment

2018 2017

30 Sep 30 Jun 31 Mar 31 Dec 30 Sep 30 Jun 31 Mar

Capio Nordic Capital employed 4,231 3,732 3,565 3,509 3,680 3,596 3,492


Capio France Capital employed 4,797 4,758 4,641 4,455 4,364 4,375 4,191


Capio Germany



Other

Capital employed 39 75 263 249 8 0 101

Eliminations

Capital employed - - - - - - -

Capio Group



Net capital expenditure by quarter – Segment

2018 2017 FULL YEAR

Q3 Q2 Q1 Q4 Q3 Q2 Q1 RTM 2017

Capio Nordic Net capital expenditure -31 -39 -33 -75 -37 -31 -37 -178 -180

In % of net sales Nordic 1.4 1.6 1.4 3.2 1.8 1.4 1.7 1.9 2.1

Capio France Net capital expenditure -74 -45 -66 -120 -58 -39 -24 -305 -241

In % of net sales France 5.6 3.1 4.4 8.4 4.9 2.8 1.7 5.3 4.4

Capio Germany


In % of net sales Germany 4.8 2.7 4.2 4.4 4.2 4.8 1.2 4.0 3.6

Other

Net capital expenditure 0 -2 -1 -8 -2 -1 -2 -11 -13

Capio Group


In % of net sales Group 3.1 2.2 2.7 5.3 3.1 2.2 1.7 3.3 3.1


Definitions

Key performance indicators

Number of outpatients Number of patient visits for patients with

length of stay shorter than 24 hours.

Number of inpatients Number of patient visits for patients with

length of stay longer than 24 hours.

Average length of stay (AVLOS) Average length of an inpatient

stay measured in number of days. AVLOS presented excludes

psychiatry, rehabilitation, nursing and eating disorder patients.

AVLOS in France has also been adjusted for the effect from the

transfer between in- and outpatient treatments. These

adjustments have been made in order to show a comparable

AVLOS between segments and over time.

Number of employees Number of employees as full-time

equivalents on average during the year.

Income statement

Total sales growth, % Increase in net sales for the period as a

percentage of the previous year’s net sales.

Organic sales growth, % Increase in net sales for the period,

adjusted for acquisitions/divestments and changes in exchange

rates, as a percentage of the previous year’s net sales adjusted

for divestments.

EBITDAR EBITDA adjusted for rent of premises.

EBITDA EBITA adjusted for depreciations and impairments

related to operating fixed assets.

EBITA Operating result before amortizations of group surplus

values, restructuring and other non-recurring items and

acquisition related costs. Capio’s definition of EBITA may be

different from the definition in other companies.

Restructuring and other non-recurring items Items relating to

restructuring or integration of acquired businesses, structural

projects and effects from divested and discontinuing operations

outside the core business.

Operating result (EBIT) Operating result before interest and

income tax.

Adjusted profit/loss for the period Profit/loss for the period

attributable to parent company shareholders adjusted for

amortization of group surplus values, restructuring and other non-

recurring items, acquisition related costs and write-off of

capitalized borrowing costs, net of income tax.

Earnings per share (before dilution) Profit/loss for the period

attributable to parent company shareholders in relation to the

average number of outstanding common shares during the

period. Refer to note 2 for calculation of earnings per share

before dilution.

Earnings per share (after dilution) Profit/loss for the period

attributable to parent company shareholders, excluding the net

cost of outstanding convertible debenture loans issued during the

third quarter 2016, in relation to the average number of shares

including effects from the convertible debenture loans. Refer to

note 2 for calculation of earnings per share after dilution.

Adjusted earnings per share (before dilution) Adjusted

profit/loss for the period attributable to parent company

shareholders in relation to the average number of outstanding

common shares during the period. Refer to note 2 for calculation

of adjusted earnings per share before dilution.

Adjusted earnings per share (after dilution) Adjusted

profit/loss for the period attributable to parent company

shareholders, excluding the net cost of outstanding convertible

debenture loans issued during the third quarter 2016, in relation

to the average number of shares including effects from the

convertible debenture loans. Refer to note 2 for calculation of

adjusted earnings per share after dilution.

Capital employed and financing

Net customer receivables and DSO Accounts receivables and

accrued production less bad debt provision and advances from

customers. DSO, Days sales outstanding, average number of

days outstanding on net sales, at balance sheet date.

Operating capital employed Non-interest bearing operating

assets and liabilities, mainly operating fixed assets, net customer

receivables, supplier payables and other operating assets and

liabilities.

Other capital employed Acquisition related surplus values (real

estate, goodwill, trademark and other surplus values), tax assets

and liabilities and other non-operating capital employed items.

Capital employed Non-interest bearing assets and liabilities as

well as provisions for employee-benefits.

Return on capital employed RTM EBITA as a percentage of

capital employed.

Net debt Interest-bearing assets and liabilities adjusted for cash

and cash equivalents.

Financial leverage Closing balance of net debt in relation to

RTM EBITDA.

Cash flow

Net capital expenditure Investments in fixed assets, net of

divestments of fixed assets excluding items classified as non-

operating, for the period.

Net investments Investments in fixed assets, net of divestments

of fixed assets, depreciations and impairments, excluding items

classified as non-operating, for the period.

Operating cash flow EBITA adjusted for net investments and

changes in working capital.

Free cash flow before financial items Operating cash flow less

income taxes paid.

Free cash flow after financial items Free cash flow before

financial items less net financial items paid.

Cash conversion, % Cash flow in relation to EBITA.

Acquisitions and divestments of operations in the operational

cash flow statement relate to the total net debt impact.

Other

RTM Rolling 12 months.


For further information

Attila Vegh, President and CEO

Telephone: +46 733 34 24 42

E-mail: [email protected]

Olof Bengtsson, CFO

Telephone: +46 761 18 74 69


Kristina Ekeblad, Investor relations manager

Telephone: +46 708 31 19 40


Henrik Brehmer, SVP Group Communication

and Public Affairs

Telephone: +46 761 11 34 14


For further information regarding Capio’s IR activities,

refer to www.capio.com.

About Capio

Capio AB (publ) is a leading, pan-European healthcare

provider offering a broad range of high quality medical,

surgical and psychiatric healthcare services through its

hospitals, specialist clinics and primary care units. Capio

operates in five countries; Sweden, Norway, Denmark,

France and Germany. In 2017, Capio’s 13,314 employees

(average full-time equivalents) provided healthcare

services during 5.1 million patient visits across the Group’s

facilities, generating net sales of MSEK 15,327. Capio

operates across three geographic segments: Nordic (57%

of Group net sales 2017), France (35% of Group net sales

2017) and Germany (8% of Group net sales 2017). For

more information about Capio, please see www.capio.com.

https://capio.com/en/investors/

http://www.capio.com/


Creating value for many people

At Capio, we work to achieve the changes and improvements needed to maintain and

develop quality and increase productivity in healthcare. This work not only benefits

patients and funders, but also ensures that Capio creates value for employees,

shareholders and society at large. Efficient, high-quality healthcare, with responsible

use of resources, is vital to the long-term development and sustainability of our society.

Capio is an innovative and reliable healthcare provider that contributes to developing

healthcare.

MISSION

Cure. Relief. Comfort

VISION

The best achievable quality

of life for every patient

VALUES

Quality. Compassion. Care

Capio’s sustainability focus areas

We organize our sustainability initiatives in four focus areas:

Quality, Business ethics, Employees and Environment.

Capio AB (publ)

Corporate identity number 556706-4448

Box 1064

SE-405 22 Gothenburg, Sweden

Visiting address: Lilla Bommen 5

Telephone: +46 31 732 40 00


www.capio.com

Read more about Capio’s

role in society in Capio Annual

Report 2017 pages 52-61.

Capio AB (publ) Interim report Jan Sep 2018mb.cision.com/Main/277/2658428/935303.pdf · 2018-10-29 · CAPIO AB (PUBL) / INTERIM REPORT / JAN – SEP 2018 3 (36) The Group and the

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